Larry, from 1,300-Year-Old Tibetan Town, China …

I’m now in the 1,300-year-old Tibetan Town, in Dukezong in Yunnan province, southwest China. A mix of mostly Tibetan Buddhists and Muslims, the area, with its dramatic scenery inspired the fictional paradise of Shangri-La described in the 1933 novel “Lost Horizon” by British author James Hilton.

To say the surroundings of mountains, streams, sheep, yack, Tibetan Monks and Imams is a sight to behold is an understatement. I have never seen such peaceful surroundings and beauty!

Tibetan Town is also along the old Silk Road. A trading route that will also be modernized by the build out of China’s Silk Road 2.0, the 21st century version of a trading network that will open Western China and trade to Europe, to Middle Asia, to Southeast Asia and even all the way to Germany on the Western portion of the route.

In a few weeks, I’ll tell you all about it, including a travelogue I’ll put together. Not to mention how you can get set to profit from the build out of Western China and Silk Road 2.0.

But right now, let me turn your attention to the markets. More specifically, DEFLATION. It’s here, with a vengeance.

The massive losses last week in nearly all commodity markets are beginning to take their toll with devastating blows in everything from precious metals and energy, to foods, soft commodities such as coffee, cocoa and sugar, and more, including slumping meat prices.

What’s causing it all? Some think it’s the soaring dollar. And in part, it is strength in the dollar that is causing import prices to decline. But it’s much more than that. It’s what the strength in the dollar signals, for the dollar itself is rising due to …

First, the absolute total mess that Europe is in. I have been warning about this for some time now, and Europe’s meltdown is now in process. The euro currency has plummeted more than 25 percent in the past few months, a shocking collapse.

The euro may bounce in the short-term, but its decline is far from over. The euro, currently trading at roughly 1.0540 to the dollar, will ultimately fall to 0.80 to the dollar, then cease to exist.

Second, European leaders’ insane policies of austerity measures and piling on more debt at the same time. It’s crushing the economies of Greece, Spain, Portugal and more, where debt to GDP ratios are rising, strangling growth, causing unemployment to remain high, and the youth to start to rebel.

Savvy Europeans, anyone with half a brain, is moving money out of Europe and into the dollar.

Third, U.S. leaders aren’t all that much better. Still up against an $18 trillion Federal debt limit, hunting down every penny of wealth Washington can get its hands on domestically and overseas, killing our tech leading spot in the world with its planting of spying devices on hard drives and computers, spying on each and every one of us …

Is all leading to a risk-off, hoarding money type of effect, causing the velocity or turnover of money and credit to slump — outright deflationary.

Bottom line: There will be more deflation ahead. Much more. For Europe, for Japan, and for the U.S.

Keep your eye on gold. It has now tested support at the $1,140 level. A bounce is overdue, but once gold closes below $1,140, DEFLATION will accelerate even more, leading to another round of crushing blows in all commodities.

And don’t let anyone fool you about the price of oil. It too has not yet bottomed. Before deflation comes to a head, oil will be trading near the low $30 level.

If you own the inverse ETFs on gold and silver, recommended Oct. 15 and the bullish ETF on the dollar, recommended Oct. 29, HOLD!

P.S. I’m so concerned about the massive new threats to your income, savings, investments and retirement that I am ready, willing and able to give you everything you need to help protect and multiply your wealth in 2015 — absolutely FREE.

Larry Edelson, one of the world’s foremost experts on gold and precious metals, is the editor of Real Wealth Report and Supercycle Trader.

Larry has called the ups and downs in the gold market time and again. As a result, he is often called upon by the media for his investing views. Larry has been featured on Bloomberg, Reuters and CNBC as well as The New York Times and New York Sun.

{42 comments }

KevinWednesday, March 18, 2015 at 9:18 am

Because the country that is strongest financially and militarily tends to lead the world economically and politically — and America has been giving that up — what country do you see taking America’s place as the world leader? China? It would seem that this should be the country to concentrate our investments in.

wereWednesday, March 18, 2015 at 9:29 am

Larry, will it surprise you that by May oil will be higher than $63? And by July it will be higher still?

mikeWednesday, March 18, 2015 at 9:46 am

Hi were, and how do you see gold pls?

wereWednesday, March 18, 2015 at 9:56 am

I know gold will not be following Larry’s “waterfall” chart. It is in a very interesting place. Gold has been hovering at a major fibonacci support for the last week. It all depends whether it continues down until beginning April and takes out the Oct low or not as to how high it will be by July. But it’s not a “bounce”. It’s an up trend for the next few months.

mikeWednesday, March 18, 2015 at 10:25 am

Thx. You probably mean Nov 2014. Ok, if gold doesnt take out that low where it could be by July? 1,400?

wereWednesday, March 18, 2015 at 10:36 am

It’s all about time. I’d rather not speculate until the low point time target has passed and we can know for sure (beginning April).

SteveWednesday, March 18, 2015 at 11:52 am

Good morning Were, could you please contact me? I would like to discuss something about time projections with you personally. fxsteve77 at yahoo.com

Rob,.Wednesday, March 18, 2015 at 11:13 am

I have never seen such peaceful surroundings and beauty!

Tibetan Town is also along the old Silk Road. A trading route that will also be modernized by the build out of China’s Silk Road 2.0

Ah yes,. well that’s progress for ya,. more history bulldozed into the past,. good ol’ china,.

Rob,.Wednesday, March 18, 2015 at 11:16 am

The euro may bounce in the short-term, but its decline is far from over. The euro, currently trading at roughly 1.0540 to the dollar, will ultimately fall to 0.80 to the dollar, then cease to exist – time frame please?

with the European QE about it kick in, i very much doubt it,.

$1,000 goldFriday, March 20, 2015 at 2:31 pm

the euro needs to cease to exist. every country needs its own currency and own central bank to regulate it’s own economy. this why there’ll never be a world currency. absolutely impossible for this idea to exist. it will never, ever happen.

randyWednesday, March 18, 2015 at 11:44 am

this stuff is now, with a few quirks thrown in to make it look like he’s an original thinker, straight from armstrong. it’s just that plain and simple! armstrong is so very wrong about conspiracies and the fall of the european union. oh, it will fall, but not before the russia/china alliance nukes ameriKa as is desired by and engineered by the ptb at which time the people of the west will beg their gov’ts to protect them and the new world order of the west (with china the new bogeyman) will be established to provide such “protection”. this is why the ameriKan police state is burgeoning to get you ready for the complete loss of your rights. why do you think such crazy themes are now popping up in films and tv?? to desensitize you to having no freedom as is the airport check in procedure! wake up!

$1,000 goldFriday, March 20, 2015 at 4:01 pm

all my ideas are mine. i never listen to armstrong, faber, rogers, buffett, schiff, or even edelson for that matter.

$1,000 goldFriday, March 20, 2015 at 4:06 pm

this deflationary cycle will end when crude oil finds a bottom.

$1,000 goldFriday, March 20, 2015 at 4:08 pm

when do you think the bottom in crude oil will happen?

$1,000 goldWednesday, March 18, 2015 at 11:46 am

like i’ve said before, i think it’s safe to say the commodity’s bull is over.

dirt cheap oil, rock bottom rates and stimulus from the ecb. europe appears to be a screeming buy. i think you’ve got this one wrong, larry. and the best way to benefit from europe may surprisingly be to buy the s&p.

Looks like Heidi will win the “closest to the pin” contest with an $1180 call for this week.

HEIDIThursday, March 19, 2015 at 4:57 pm

BFD ….I even forgot …lol And I was wondering why JDST is dropping …what a dummy I am LOL

TrevieFriday, March 20, 2015 at 11:39 pm

Wow this Larry is a superman, why isn’t he wearing tights in his picture. But are even a fraction of these claims actually true – or do we need to call in the myth busters??? What Bravado:

The start of the major bull markets in Asian economies and stocks in 2004.
■
The stock market crash of 2008.
■
The major bottom in stocks in March 2009, stating on March 16, “expect a giant rally back to over
10,000 in the Dow.”
■
The European crisis of 2010.
■
Every major twist and turn in the gold market, including the correction in gold within an eyelash of the
exact top on September 6, 2011.
Not only did I foresee these events, but I’ve shown my readers how to make eye-popping gains by taking ad-
vantage of the HUGE opportunities they presented — like the 196.8% gains investing in the minerals boom of the
late 2000s … and the 142.9% returns they could have made in silver shares in just the last few years.
And this dedication to my readers didn’t start with the
fi
rst issue of
Real Wealth Report
just over 10 years ago.
For more than three decades, I’ve successfully called nearly all the major turning points in the world’s macro-eco-
nomic trends, including:
■
The 20-year bear market in precious metals between1980-2000.
■
The stock market crash of 1987 and the rally that followed.
■
The bursting of the tech stock bubble in 2000 that cost U.S. investors an estimated $6.5 trillion in losses.
■
The new bull market in natural resources that began in 2000.

TrevieFriday, March 20, 2015 at 11:44 pm

“The amount of money that will be made will be staggering.
But it won’t stop there with gold and silver. There will be hugely profitable moves in mining shares, in plati-num, palladium, copper, oil, and of course, the agricultural markets. Not to mention the ramping up of the war
cycles that I have told you about, which should be abundantly clear now with what’s happening in Ukraine.
Bottom line:
Now is definitely NOT the time to “go it alone.”
You should have your
Real Wealth
Report
membership by your side so I can help you seize all the opportunities
that are coming up during this crucial year … and the years to come.
So here is my special 10
th
Anniversary offer to you ….
Renew your membership now for a mere $49 for a full year of
Real Wealth Report — 67% off the
regular price! You SAVE $100! ”

OMG ENOUGH I’M GOING TO HAVE AN ORGASM JUST LISTENING TO THIS DEMI-GOD.

BFDFriday, March 20, 2015 at 11:55 pm

A few years ago, Larry had these marvelous calls, to the dollar; the dow @, gold @, etc., etc. Four or five calls. I actually printed them out and put them next to my computer – not that I fell for his line – just to see how he did. None were even close. I mean he had the dow going back to the low 9000s. Never came to within 1000 points of his call. It was definitely a “LOL” moment! The truth is NO ONE can call the market – – except maybe Heidi who called for 1180 gold this week.

$1,000 goldSaturday, March 21, 2015 at 9:14 am

i can call the market, bfd. you ready? here goes. the market will go up. the market always eventually goes up. the market always eventually returns. buy and hold is still the best strategy if you have a long-term horizon.

bfdSaturday, March 21, 2015 at 1:00 pm

$1000 gold – OK

$1,000 goldMonday, March 23, 2015 at 2:54 pm

$2,000 gold

bfdSaturday, March 21, 2015 at 1:49 pm

$1000 – Actually, your statement of ‘buy-and-hold’ being the best is an agreement that no one can ‘call’ the market. ‘Call’ indicates precision (or extremely close). A ‘buy-and-hold’ is what Buffet preaches; because, no one can “call’ the market. So, $1000, you are in good company with Buffet.

$1,000 goldSaturday, March 21, 2015 at 4:16 pm

buffett has terrible timing and makes bad buys on good stocks all the time. when he screws up, buffett doesn’t do what most people do and that’s sell at a loss. instead he holds until he can at least break even. buffett knows good stocks always eventually return and he can get out without a loss sooner or later. he held some stock he bought years ago before the 2009 crash until they recently broke even. the real secret to warren’s success is he’s stubborn and will hold however long it takes to not have to report a loss to his shareholders. warren says if he can find one good stock a year he’ll beat the s&p average because the rest will at least break even.

bfdSaturday, March 21, 2015 at 4:48 pm

I rest my case.

HeidiSaturday, March 21, 2015 at 9:00 pm

BFD ….you are hilarious LOL !!!
Should we go for one more ? Gold to 1208-1220 but needs more than 1 week .
Let’s see how that works and JNUG back to 24 – 26 ?

BFDSunday, March 22, 2015 at 8:40 pm

Heidi – If you get it right twice in a row, Larry will start reading your newsletters!

HeidiMonday, March 23, 2015 at 11:29 am

BFD LOL !!!!!

BobSaturday, March 21, 2015 at 8:42 am

I’m always willing to learn and your outfit is a great teacher

w gSaturday, March 21, 2015 at 11:36 am

if the restrictions on export of lscrude are lifted and the price of brent and ls reverse or reduce the spread how tough is it going to be on the crack spread for refiners?i am particularily interested in the cushing area.

godMonday, March 23, 2015 at 11:04 pm

fools – if larry told you the market was going to go up for the past six years like it has, you wouldn’t need him and he wouldn’t sell a you a subscription.

HeidiTuesday, March 24, 2015 at 3:27 am

god …..dumb comment !

BFDTuesday, March 24, 2015 at 3:35 pm

I’m not going to use the person’s “name” above, as I find offensive. That’s his/her business, of course, but it’s my choice not to use it.

People comment on Larry not calling the dow turnaround (I have read several postings) back in March of 2009; but he did. The excerpt below can be verified. Larry did not get all 3 calls correct, but give credit where credit is due. He did call the dow when there was “blood in the streets”.
————————————————————————————————————–
Larry Edelson | Thursday, March 19, 2009 at 7:30 am

All markets are reaching critical turning points this month. If my indicators are correct, and I strongly believe they are, we should see …
– A major bottom in stocks. And a multi-month rally in the Dow that could bring it back to 10,000
– An important top in the U.S. dollar, leading to renewed fears of inflation
– A collapse in U.S. Treasury bonds and a wild jump in interest rates